the outcome of the Iran war; A 1.9 percent reduction in construction costs in America.
Construction costs in the United States fell 1.9% in September; A decrease beyond the forecasts of the economists that occurred at the same time as the consequences of the American war and the captivity with Iran, including the increase in mortgage interest.
According to Reuters, since the war began in late February, the average interest rate on 30-year mortgages has risen by at least 25.1 percentage points, putting pressure on housing investment.
According to statistics released Monday, construction costs in August rose 2 percent, according to revised statistics. Economists polled by Reuters had forecast spending would rise 0.3% in September.
Investments in residential projects fell by 5.5% in September and construction costs in the private sector fell by 2.4%. The increase in the price of construction materials and the decrease in the cost of rebuilding houses were cited as possible causes of this decrease. According to data from the housing finance company Freddie Mac, mortgage rates have risen significantly since the beginning of the war. Investments in the housing sector of the United States also showed a downward trend in the third quarter of the year.
In contrast, investment in non-residential buildings in the private sector rose 1.1% in September, while construction spending in the public sector fell 0.1%.
Overall, US construction costs were 2.7% lower in September compared to the same period last year.